Capital Loss carry over
If I have more than 3,000 capital loss carry over from the previous year, plus I have few more thousands this year, how much can I use against the capital gain ordinary income?
Comments
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Hi Godzilla,
You can use the capital loss carryover up to the amount of capital gain you have in the current year, plus an additional $3,000 loss.
For example, let's say you have $45,000 of capital gain loss carryover from prior years. In 2024 you have $35,000 capital gains. You can use $35,000 of the carryover loss, plus another $3,000, and have $7,000 to carry over to 2025. The loss completely wipes out the $35,000 capital gain for 2024.
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Thank you - and where is that option invoked as you navigate FreeTaxUSA? 1st look this year and it didn't readily come up for me.
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That can be done by going to Income > Common Income > Capital Loss Carryovers from Last Year. You will be prompted there to enter any short-term and long-term capital loss carryover from last year.
You'll want to use the Capital Loss Carryover Worksheet to calculate your capital loss carryovers from 2023 to 2024.
